Mr. Caleb Stroup reports

HEADWATER ANNOUNCES DRILLING PLANS FOR THE TJ PROJECT, NEVADA

Headwater Gold Inc. has identified multiple high-priority drill targets and has finalized plans for the company's maiden drill program on its 100-per-cent-owned TJ project located in northeastern Nevada.

Highlights:

• Drilling program scheduled: Drilling permits have been received, and plans finalized for a maiden drill program projected to consist of an initial 2,000 metres. Drilling is scheduled to commence in fall 2024 and will be fully financed by Headwater Gold.
• Drill program objective: This maiden drill program will test multiple targets for high-grade epithermal veins at depth beneath outcropping silica sinter and downdip of historic shallow drill holes that encountered broad zones of silicification and epithermal alteration, ending in anomalous gold mineralization.
• Controlled-source audio-frequency magnetotelluric survey: Recently acquired CSAMT geophysics have identified a number of high-priority drill targets vertically below a mapped silica sinter exposure at surface. Several large areas of elevated resistivity have been mapped at depth, which Headwater Gold geologists interpret as silicification related to potential feeder structures.
• New target zone: Detailed geologic mapping and rock chip sampling have identified a new target area containing subcropping quartz vein boulders with epithermal textures and anomalous gold values one kilometre south of the main sinter target area.

Caleb Stroup, president and chief executive officer of the company, stated: "We are very excited for this upcoming drill program at our TJ project. Following the results of our recent CSAMT survey, this project has immediately moved to the top of our list for self-funded drilling. The project shows remarkable similarities to our Spring Peak project, also in Nevada, where we have discovered a new high-grade epithermal vein system. Like Spring Peak, TJ hosts a well-preserved silica sinter with a strong trace element signature at surface underlain by a high-resistivity zone directly below. Shallow historic drilling encountered anomalous gold but did not drill deep enough to test for high-grade veins in the projected boiling horizon at depth. The company has a strong treasury following the recent strategic financing with Centerra Gold [Inc.], allowing us to advance our mandate of creating additional shareholder value through aggressive, high-impact exploration. The TJ project represents an excellent opportunity to pursue this mission in our focus area of Nevada."

2024 drill program

Headwater Gold's maiden drill program at TJ has been planned and is currently scheduled to commence in late October, 2024. Drill permits have been authorized by the Bureau of Land Management, and drill contracts are in place. The initial TJ drill program is expected to consist of approximately five to seven reverse circulation drill holes ranging in depth from 250 to 400 metres.

The primary objective of the drill program is to test for high-grade veins at depth along multiple subparallel structures in the core of the alteration cell. Shallow historic drilling targeting near-surface oxide mineralization encountered broad zones of silicification, epithermal alteration and anomalous gold in this area, but did not penetrate to sufficient depths to test for potential high-grade feeder structures. The majority of historic holes was vertical, and none of the holes drilled to depths beyond 150 metres. Several of the deeper historic holes encountered anomalous gold values (greater than 0.1 gram per tonne gold) with some ending in mineralization. Headwater Gold drilling will target depths of approximately 175 to 250 metres vertically beneath the silica sinter exposed at the surface to test for high-grade epithermal veins within a potential epithermal boiling zone.

CSAMT survey

A controlled-source audio-frequency magnetotelluric resistivity survey totalling 8.2 line kilometres on five parallel profiles was completed by Headwater Gold over the TJ project. Survey lines were located proximal to the main target area, where a thick accumulation of silica sinter is preserved, and were designed to identify the subsurface geometry and strike extent of potential mineralized structures at depth. A broad zone of high apparent resistivity was identified directly below the sinter. This high-resistivity feature appears to be continuous over a north-south strike length exceeding 700 metres, and a good correlation exists between this high resistivity and silicified intervals logged in historic drill holes, supporting the interpretation that the observed high resistivity is due to silicification introduced by hydrothermal alteration. Multiple high-angle resistivity breaks are also apparent in the CSAMT data within and at the margins of resistive bodies, and are interpreted as potential mineralized feeder structures and the primary targets for Headwater Gold's 2024 drilling.

Geologic mapping and surface sampling

Detailed geologic and alteration mapping completed by Headwater Gold near the main sinter target area, as well as regional mapping across the broader project area, has delineated structures and helped identify multiple high-priority drill targets. High-level epithermal alteration is preserved at the surface of the property and includes a broad envelope of argillic alteration centred around a thick and laterally extensive accumulation of silica sinter and water table silica (see Headwater Gold news release dated Oct. 3, 2023).

Recent surface rock chip sampling returned anomalous epithermal pathfinder element geochemistry with strongly anomalous gold and silver values from samples of silicified breccias and chalcedonic quartz veins. Shallow alluvial cover blankets much of the property, and outcrop exposures are limited, but silicified outcrops and concentrations of vein float closely align with mapped structures. Reconnaissance geology returned a range of subcrop and float vein samples with diagnostic epithermal textures, including lattice-bladed quartz after calcite that indicates boiling conditions. Initial rock chip sampling returned values up to 354 parts per billion gold for these vein samples, and revealed an area with subcropping epithermal veins along the southern continuation of the main structural corridor. Vein compositions and textures in this area are generally indicative of high-level portions of an epithermal system, but imply the potential for high-grade mineralization at depth. Detailed follow-up sampling and geologic mapping are planned to further characterize this new target area.

About the TJ project

The TJ project is located on Bureau of Land Management land in an underexplored area of northeastern Nevada, approximately 25 kilometres southeast of the town of Jackpot. The project area contains indications of a fully preserved epithermal system, including a thick and laterally extensive accumulation of silica sinter and water table silica in the core of the property. Epithermal alteration is localized along a series of steeply inclined faults that bound a sedimentary graben filled with Miocene-age sedimentary rocks and locally extends into granitic basement. Limited historic exploration at the property included shallow RC drilling that confirmed the presence of a broad zone of high-level epithermal alteration. The company believes that the project has potential for high-grade vein-style mineralization at depth, and plans to complete an initial drill program in fall of 2024.

The TJ project consists of 90 unpatented mining claims staked by Headwater Gold and 13 unpatented mining claims under option from a private arm's-length party. By making an initial cash payment of $15,000 (U.S.), escalating annual payments and a $250,000 (U.S.) work commitment over a two-year term, Headwater Gold retains a 30-year right to purchase an undivided 100-per-cent interest in the vendor claims for a one-time payment of $1.5-million (U.S.) inclusive of the annual minimum payments, subject to net smelter return royalties of 2.5 per cent on the vendor claims and 1.5 per cent applicable on claims within an area of interest. The company may purchase 40 per cent of the NSR for $2-million (U.S.) at any time, and an additional 40 per cent of the NSR may be purchased for fair value within 90 days after completion of a National Instrument 43-101-compliant prefeasibility report.

About Headwater Gold Inc.

Headwater Gold is a technically driven mineral exploration company focused on the exploration and discovery of high-grade precious metal deposits in the western United States. Headwater Gold is aggressively exploring one of the most well-endowed and mining-friendly jurisdictions in the world with a goal of making world-class precious metal discoveries. Headwater Gold has a large portfolio of epithermal vein exploration projects and a technical team of experienced geologists with diverse capital markets and junior and major mining company backgrounds.

The company is systematically drill testing several projects in Nevada, and in August, 2022, and May, 2023, announced significant transactions with Newmont, where it acquired a 9.9-per-cent strategic equity interest in the company and entered into earn-in agreements on several of Headwater Gold's projects, including Spring Peak and Lodestar, which continue under partnership. In September of 2024, Centerra Gold acquired a strategic 9.9-per-cent interest in the company through a non-brokered private placement at a premium to market.

Headwater Gold is part of the NewQuest Capital Group, which is a discovery-driven investment enterprise that builds value through the incubation and financing of mineral projects and companies.

Qualified person

The technical information contained in this news release has been reviewed and approved by Scott Close, PGeo (158157), a qualified person as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

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